The New Jersey Mental Health Residential Reform Treatment Act aims to address the growing crisis of mental health and substance use disorders in the state, particularly among adolescents and adults. The bill establishes a licensure pathway for non-hospital based inpatient residential mental health treatment facilities, which will provide mid-to-long-term treatment lasting 45 to 120 days. These facilities will offer comprehensive services, including medication management, skill-based therapies, and holistic, trauma-based care, filling a critical gap in the current system that primarily focuses on short-term psychiatric stabilization in hospital settings. The act also seeks to alleviate the shortage of mental health professionals in New Jersey, which affects nearly 40,000 residents, by implementing initiatives such as training grants, loan forgiveness programs, and competitive salary incentives.

To ensure the quality and safety of care provided by these new facilities, the act outlines rigorous licensure requirements, including accreditation, minimum staffing ratios, mandatory staff training, and regular inspections by the Department of Health. The Division of Mental Health and Addiction Services, in collaboration with the Department of Health, will develop regulations for licensure and maintain a public registry of licensed facilities. Additionally, the act mandates annual reporting on the implementation and impact of these facilities, including patient outcomes and compliance with standards. By establishing this framework, the act aims to improve access to mental health care, reduce hospital admissions, and ultimately enhance the overall mental health service continuum in New Jersey.